New Registration Procedure for VAT purposes

Summary:

Order No. 239/2021 for the approval of the Registration Procedure for value added tax purposes, according to the provisions of Art. 316 para. (1) point a), b) or c) of Law No. 227/2015 regarding the Fiscal Code was published in the Official Gazette No. 182/23.02.2021, in force as of 23 February 2021.

The new Procedure was published further to the elimination from the Fiscal Code (by Government Emergency Ordinance No. 69/2020) of the risk assessment criteria based on which the tax authority used to approve the registration for VAT purposes.

Thus, at present, the tax authorities assign a registration code for VAT purposes, following a simple request from the taxpayer, without having to go through the risk assessment procedure. Consequently, the taxpayer will only submit the form 098 (if the registration is requested simultaneously with the registration at the Trade Register) or form 010 (if the registration is requested afterwards).

The validity of the taxable person’s registration for VAT purposes starts with the date of communication of the VAT certificate or with the first day of the month following the month in which the taxable person requests the registration, as the case may be.

In order to exclude the risk of activating a VAT code in case a taxpayer is declared tax inactive or in case there are facts recorded in the tax record, the tax authorities perform these verifications and issue the decision for the annulment of the VAT registration, concomitantly, if the case. The registration certificate for VAT purposes shall be communicated to the applicant only after these checks have been carried out. Also, there is still the possibility that the tax authorities subsequently cancel the VAT code, if the criteria related to the risk assessment (provided by the Order No. 2856/2007) are not met.

Alexandru Cristea
Tax Partner ŢUCA ZBÂRCEA & ASOCIAȚII TAX

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